Donald Trump sees Tiktok as a national security risk and calls for US participation in the Chinese app. The developer headquarters will probably be relocated to the United States, but US partner Oracle will only receive a minority stake in Tiktok. Trump does not like this plan.
US President Donald Trump has dampened prospects for the deal that is supposed to save the Tiktok video app in the US. According to previous announcements, the American software company Oracle is to take on the role of a "technology partner", while according to media reports the Chinese Tiktok owner Bytedance will retain the majority stake. Trump does not want to endorse such a solution. "Conceptually, I can tell you that I don't like it," he said at a press conference. However, he will only be informed about the details of the plan on Thursday. However, he did not advocate the idea that the Chinese company would remain in control. "I'm not ready to sign anything."
The Wall Street Journal reported afterwards that the White House was pushing for American investors to get a majority in Tiktok. Trump originally gave Bytedance the choice of either parting with Tiktok or accepting an end to the app in the USA.
Trump describes Tiktok as a security risk on the grounds that Chinese authorities could get data from Americans. Tiktok and Bytedance deny this. Microsoft spent weeks negotiating a purchase of the Tiktok business in the United States, Canada, New Zealand, and Australia.
However, the Chinese government torpedoed this solution with a new rule according to which software algorithms like those from Tiktok can only be sold abroad with their approval. The new plan was then worked out with the participation of Oracle. According to media reports, Oracle should take over the storage of data from US users – and also get access to Tiktok's software code. This should ensure that the platform does not contain any back doors for Chinese authorities. In addition, the global business of Tiktok will be bundled according to the plan in a new company based in the United States, it said.